Fuel price rise could be on its way as Britain votes to leave the EU

Lisa Nightingale

Motorists could be in for a bumpy ride over the price of fuel and future travel as Britain prepares its departure from the EU - according to a leading motorist group.

The AA believes the result has left many unanswered questions and instability at the pumps as the market adjusts to the news.

Fuel prices will be the biggest immediate concern of drivers with the weaker pound and the Chancellor’s prediction that leaving the EU would lead to fuel duty increases.

Edmund King OBE

It fears with the pound falling by more than nine per cent overnight and the weaker pound against the dollar it will lead to fuel prices creeping up.

Stricter border controls between the UK and other European countries are expected to be put in place which could lead to greater delays for travellers and increased bureaucracy.

The move could also have greater implications for the freight transport industry while limits could also be placed on how much ‘duty free’ could be brought home.

For drivers taking their car abroad, under current EU legislation, anyone who has a car that they insure can legally drive their car in any other EU country and benefit from the minimum level of insurance cover. This could be removed in the longer term. Motorists must also display a GB sign, as yet it is unclear if the GB Euro-plates will still be valid.

Edmund King OBE, AA president, says : “While the fallout of the referendum result will continue to be discussed, there are lots of points drivers will want to see resolved. As the voice of the motorist we will ensure that their views are heard loud in clear throughout the negotiation process.

“Driving abroad anything can happen but we would like to reassure our members with AA European Breakdown Cover that they will continue to get a first class service coordinated from our control centre in Lyon.

“Fuel prices will be the biggest immediate concern of drivers with the weaker pound and the Chancellor’s prediction that leaving the EU would lead to fuel duty increases. We will oppose duty increases and continue to monitor the situation on behalf of our members.”

The AA has said there will be no immediate effect on British drivers taking their car to Europe and “assure members” they will be unaffected as they continue to work with roadside assistance clubs across Europe.

There is also no change to travel insurance cover for travellers and existing policies will remain effective. The European Health Insurance Card (EHIC) which provides reciprocal health cover in EU countries will continue to apply.

Meanwhile the Association of British Insurers (ABI) is urging people not to be too hasty following the result in particular around pensions and buying insurance from non-British companies.

They said policies purchased from companies abroad would remain unchanged.

The ABI said: “Having your savings in a fund managed by a pension provider means they are being professionally looked after, and this will include strategies to minimise the impact of any periods of poor performance. The UK insurance and long-term savings industry is strong and built to protect customers from market uncertainty and shocks.”